As part of our dedicated Private Label Issue, ESM spoke to industry leaders at a number of retailers across the continent, about why they believe private label continues to set the pace in European retail. This article first appeared in ESM's May/June 2023 edition.
The current inflationary situation has led many customers to embrace private labels. What trends have you noticed?
Indeed, we are having an impact on consumption as a result of this complex and unpredictable environment, with high levels of inflation and other rising costs that are affecting families.
We are observing a clear change in consumers’ behaviour. In this context, they are choosing our private brands as the option that best suits their needs, while they are also using the advantages of our loyalty programme, Eroski Club, and other promotions.
In what product categories have you seen the highest private-label growth, and why?
In the last few months, most categories have increased their share. The ones that have done it more intensively are very varied. Some of these include oils, eggs, milk, canned vegetables, detergents, fabric softeners and baby food. In my opinion, the reason for this can be explained by three factors.
One is the increase of prices, the second is the share and the potential growth, and the third is the scale of the relevance of the main brands in each category.
How are you seeking to adapt your private-label offering to cater to both value-hungry and premium shoppers?
At Eroski, our assortment proposal covers a wide and complete range of needs with all brands. Thus, our customers can choose between the brands of the main manufacturers on the market, our private brands, or a mixed-basket composition, according to their tastes or preferences.
In the case of our private brands, we follow a strategy of total coverage of needs, even the most specific food needs, adapting the performance of the product, mainly under the Eroski brand. We also cover all price and value ranges, from essential items, with our Eroski Basic brand, to premium items, under our Eroski Seleqtia brand, which features almost 200 products.
What new private-label product launches or campaigns have proven particularly successful over the past year?
We are very pleased with the launch of the Eroski BIO range – almost 100 products that are produced and manufactured under strict controls that guarantee their quality, respect for the environment, and animal welfare – and, in turn, our Eroski Veggie range, a specific assortment for an increasingly popular way of eating and living in our society.
© 2023 European Supermarket Magazine – your source for the latest private-label news. Article by Stephen Wynne-Jones and Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.